More Delays And Funding Issues For Margaritaville Hollywood
Well it appears that the Margaritaville Hollywood project is once again going to be delayed.
On Wednesday’s City Commission meeting, the Commissioners voted to suspend enforcement of deadlines for the stalled project until a new financing plan and schedule is developed and presented. The Commission will not meet in August so it will be at least until September when a new plan will even have an opportunity of presenting itself.
After the failure to secure enough funding through the Federal Government’s EB-5 program, Developer Lon Tabatchnik is negotiating with undisclosed investor groups for the more than $70 million needed to complete the Jimmy Buffett-themed venture. He is also asking the Hollywood CRA (Community Redevelopment Agency) to increase and already committed $10 million loan by 130%. This would bring the total amount committed by by the city’s CRA fund to $23 million.
I really hope the city does not plan on “investing” any more money into this project. They have already agreed to loan $10 million to a project which so far, has not kept up to its promises. I think the worst thing that an agency like the CRA could do at this point is throw more money at failing project.
If you ask for a loan and your project does not work out as anticipated, the easiest solution is to ask for a bigger loan. No other investors are coming forward. Why is this? Obviously the city has a big interest in this project and has committed much to it, including a $10 million loan, but lets not go overboard.
All of this on top of the fact that Broward County is no requiring the developer to precisely define boundaries and how the project will affect public rights of way, roads and services. Along with several other earlier delays, this new process alone could delay the project by at another four months.